General American Life -
GenAmerica

Demutualization is the
process of converting a mutual life insurance company, which is owned by
its policyholders, into a publicly traded stock company owned by
shareholders, pursuant to a plan of conversion approved by policyholders
and government regulators.

Mutual life policyholders (and heirs) continue to be entitled to receive
whatever policy benefits may be due, but in addition receive stock, cash
and/or policy credits in exchange for their ownership interest in the old
mutual insurance company.

The amount paid to each policyholder is based on a number of factors,
including length of time the policy has been in force, face value of the
policy, and total premiums paid. For many policyholders, the windfall
arising from demutualization can be substantial.
Shares may be sold at any time, without affecting policy benefits.

In 1998 General American Life, a subsidiary of
GenAmerica,
announced a plan to convert from a mutual holding company structure to
that of a publicly traded stock company.

Shortly thereafter, however, on August 10, 1999, the Missouri Department
of Insurance placed General American Life Insurance Company under an order
of administrative supervision. The cause of the supervision order was the
company's inability to satisfy the liquidity demands for $5 billion in
withdrawals by 37 institutional clients, holders of funding agreement
contracts held by General American.

As a result of the supervision order, Instead of the planned
demutualization General American accepted agreed to be acquired by
MetLife. The $1.2 billion sale price paid by MetLife was deposited in an
account for the benefit of General American Mutual Holding Company
policyholders and heirs.

Distribution began on July 31,
2001. Eligible policyholders received a fixed component of 20 AmerUS
common shares, as well as a variable component based on policy value.
Those who elected to receive cash were compensate $26 per share
entitlement. In the first year after the initial public offering, the
price of an AmerUS common share increased 99%.

Hundreds of thousands of missing policyholders
aren't aware they are entitled to receive demutualization compensation.
Contact efforts were unsuccessful,
due to name changes after marriage or divorce, unreported changes of
address, expired postal forwarding orders and non-current beneficiary
information. And a recent government audit found 21 major life insurance
companies failed to pay death benefits to beneficiaries even in cases
where they knew the policy holder was deceased. {Life
Insurance Settlement Claims}

By law,
unclaimed demutualization compensation is remitted to the custody of a
government trust account until claimants come forward.

► Current and former policyholders and their heirs
- the majority of whom are unaware they're entitled to
unclaimed stock and/or cash - should initiate a database search.